The power of me: The impact of personalization on marketing performance

Copyright©Epsilon2018EpsilonDataManagement,LLC.Allrightsreserved.
The power of me:
The impact of personalization
on marketing performance

2 2
Table of contents
Research objectives 3
Executive summary & recommendations 5
The findings
• What consumers think about personalized experiences 9
• How various industries stack up in personalization 16
• How to identify consumers who are receptive to personalization 35
Methodology 40
2

3 3
We partnered with GBH Insights to survey real consumers to understand how
personalization can enhance the relationship between brand and consumer.
The results show how consumers feel about personalization, what experiences influence
their behavior and what we can do to better connect with them to drive business results.
Research objectives
Goals:
Understand
consumers’ general
behaviors and
attitudes around
personalization and
sharing of personal
information.
Determine which
consumers appreciate
personalized experiences
and which elements of
personalization are stronger
in driving results.
Identify types of
consumers who are
most open to
personalization and
determine how to
reach them more
effectively. 3

4 4
Copyright©Epsilon2018EpsilonDataManagement,LLC.Allrightsreserved.Copyright©Epsilon2018EpsilonDataManagement,LLC.Allrightsreserved.
The appeal for personalization is high among
consumers. They not only want it, but expect it. And
our research found that personalization is profitable.
• Where we used to shy away from personalization,
consumers now expect brands to use big data.
• Top marketers are using data-driven approaches to create
buzz, experiment with new approaches and drive loyalty.
• Technology and data empower marketers more than ever,
but it’s hard to connect it all together to create truly
personalized experiences.
• We can now deliver content experiences that consumers
want, not just promotions or campaigns.
• But many brands haven’t yet solved for personalization.
Why personalization matters

Executive summary
& recommendations

6 6
Executive summary
6
6
Appeal for personalization is high and has the
potential to positively impact businesses if offered in
the right way.
Websites/mobile apps are slightly better at
personalization than physical locations, likely due to
greater access to customer-level data.
Financial incentives (e.g., tailored discounts/offers)
have the greatest impact on most types of business.
Consumers appreciate personalized experiences, but
many still want control over this type of
communication.
Consumers are willing to share data that powers
experiences openly with brands they value and trust.
Personalization is not one size fits all; there’s a
spectrum of consumers who are open to sharing
personal information.
Well-executed personalization strategies have strong
ties to high purchase volumes. In fact, high-value
segments want more personalization.
Look to industries already doing personalization well
— like retail, travel and media — to determine best
practices for your business.

7 7
Copyright©Epsilon2018EpsilonDataManagement,LLC.Allrightsreserved.Copyright©Epsilon2017EpsilonDataManagement,LLC.Allrightsreserved.
Recommendations
• Use the power of data consumers share with you wisely,
creating valuable personalized experiences in return.
• Create a sense of security and trust with consumers by
providing transparency around data use practices and
communicating what choices consumers have when it
comes to how their information is being used.
• Flip the order in which you think about your technology.
First think about the customer experience you want, then
what tech/systems needed to create that experience.
• Personalization provides consumers value by saving
them money, making things more convenient and
providing exceptional service.
• Take advantage of all the data sources available to you. Data
fuels personalization and personalization is clearly valued by
consumers.

8
The findings

9
What consumers think
about personalized
experiences

10 10
of consumers are more
likely to do business with
a company that offers
80%
Overall, affinity towards personalization is strong.
Base: Total (n=1,000)
Q3. In general, how appealing is a personalized experience if a company offered this to you?
Base: Total answering (n=897; 37*) *indicates small sample size <50
Q5. If a company offered a personalized experience, how would that impact your likelihood to do business with them?
90%
7%
4%
Very/somewhat appealing Neither appealing nor unappealing Not very/not at all appealing
The appeal of personalization
10

11 11
And companies are continually improving their ability to personalize.
Q8. In the past year, do you believe companies have gotten better, stayed the same, or gotten worse at providing personalized experiences?
Progress of
companies offering
personalized
experiences over
past year
66%
27%
7%
Much/somewhat better
Stayed the same
Much/somewhat worse
11

12 12
Q1. For this survey, we will be focusing on the topic of personalized experiences that a company might offer to their customers. Thinking about these personalized experiences, what does this mean to you? Please be as specific as possible.
“It means that the
company will know what
you want, your likes and
dislikes and make sure
you have what
you want.”
“They offer personalized
offers, products and
coupons that meet your
needs and are items you
typically buy.”
“…dedicated shopping
assistant, order puller-
have the order ready.
Curb service, disabled
entry doors.”
“It means noticing how I
shop/surf the internet
and customizing
advertising and
shopping options to my
preferences.”
“It means it's
something suited to
me exactly so that I'm
more likely to be
interested in what
they’re selling.”
How consumers interpret personalization:
But, personalization means something different to everyone.
32%
32%
16%
8%
7%
Customization Service Discounts/
offers
Specific
products/
services
Convenience
12

13 13
Ways that companies are currently doing well at personalization:
29% Discounts/offers
27% Recommendations
21%
Convenience
15%
Service
15%
Mobile app/website
Websites/mobile apps
41%
12%
Recommendations
13%
Convenience
31%
Physical locations
Financial institutions are
winning at service and
mobile apps/websites.
Groceries and drug
stores, and travel and
leisure companies are
discount powerhouses.
Dept./mass merchandise, grocery/drug store
and travel and leisure perform well in
discounts/offers.
Online retailers and media/entertainment are
doing especially well in providing
recommendations.
Discounts/offers
Service
13
Base: Website/Mobiles Apps (n=503), Physical Locations (n=422)
Q11. You mentioned that [PIPE IN FROM Q10; REFER TO SPREADSHEET FOR WORDING] are currently doing well when it comes to personalized experiences. What are some ways that they are doing this well? Please list
examples and be as specific as possible.

14 14
14
Top companies providing
Top personalized experiences mentioned
(open-ended mentions)
Customized recommendations and discounts are most memorable.
Stores like Amazon excel in personalization likely because of their ability to use real-time browsing and
buying history to recommend products to customers.
Recommendations based on
preferences/purchases
Convenience of saved
information like
habits/preferences
Nothing
19%
5%
Q2a/b. Thinking about the description you just read, what are some ways that you’ve experienced personalized experiences from a company that resulted in benefiting you in some way, such as making your experience doing
business with them more convenient, easier, faster, or helping you save money? As a reminder, please think about all the ways that you might interact with a company, including visiting a physical location, browsing a website,
receiving direct mail, on a mobile app, etc. Please be as specific as possible. (Showing above 1% mentions)
22%
Coupons/discounts,
rewards programs,
saves $
31%
Helpful and
personable customer
service
20%

15 15
15
Most consumers appreciate personalization when benefits/incentives
are tailored to them.
25% 75%
32% 68%
32% 68%
36% 64%
36% 64%
43% 57%
Getting personalized offers is creepy to me.
Getting a personalized experience from a company I’m doing
business with is not worth giving up my personal information.
Companies generally are unable to recognize me across the
various ways that I interact with them (e.g. across each of my
devices, in-store, online, etc.).
Most companies don’t do a good job using my personal
information to create a personalized experience for me.
Despite collecting my personal information, companies don’t
seem to be getting better at using it to create a personalized
experience for me.
I do not trust that companies will use my personal
information in the most secure way possible.
I think it is very cool when I get personalized offers.
It is worth giving my personal information to a company in
exchange for offers, product recommendations, discounts, etc.
that are personalized for me.
I have noticed that companies have been able to recognize me
across the various ways that I interact with them to provide a
personalized experience.
Most companies do a good job creating a custom-tailored
experience for me based on having my personal information.
I have noticed that companies are getting better at using my personal
information to deliver a better, personalized experience for me.
I am confident that the companies I give my personal
information to will use it in the most secure way possible.
Q24. Please read the two statements below and select the response that you agree with more.
% agree more with positive statement% agree more with negative statement

16
How various
industries stack up
in personalization

17 17
Key findings by industry
17
Aim to offer tailored experiences that fit the needs of
consumers within your specific industry, following the lead
of companies that are already stars in the space.
• You should also cater to the communication preferences of
the consumer (e.g., weekly/monthly emails).
Within websites/mobile apps, online retailers are
nailing personalization, while the financial and auto
industries have the most room for improvement.
• This is especially true for the auto industry where there
is currently no leader in this space.
Grocery/drug stores perform the best in
personalization for physical locations, while media &
entertainment and auto companies have the most
opportunity for growth.

18 18
Of consumers would be
MORE LIKELY TO DO
BUSINESS with them if they
offered PERSONALIZED
EXPERIENCES
86%
69%
Of consumers think that
the industry is nailing
PERSONALIZED
EXPERIENCES
How would consumers prefer
to receive personalized
experiences?
§ Email 53%
§ App on your phone or
other mobile device 49%
§ Company website 46%
How often would they like
to receive them?
Weekly 69%
Providing offers or coupons
based on past purchases or
preferences you’ve set
based on your physical
location
Sending you customized
communications
50%
30%
24%
Department or mass merchandiser (website/mobile app)

19 19
MORE LIKELY TO DO
EXPERIENCES
78%
63%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 64%
§ Company Website 38%
to receive them?
Weekly 51%
preferences you've set
communications based on
past purchases or
location
47%
39%
33%
Department or mass merchandiser (physical location)

20 20
MORE LIKELY TO DO
EXPERIENCES
89%
59%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 55%
to receive them?
Weekly 45%
Website opens to the
page you prefer
Storing your financial
activity history for you to
reference later
Storing your billing
information / preferences
29%
29%
23%
Financial institution (website/mobile app)

21 21
MORE LIKELY TO DO
EXPERIENCES
77%
61%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 61%
§ Text message 41%
to receive them?
Weekly 44%
Reminding you of
outstanding financial
transactions that need to be
completed
Allowing you to set up
recurring financial
transaction
Recommendations of
financial products
appropriate for your
financial situation
43%
43%
32%
Financial institution (physical location)

22 22
MORE LIKELY TO DO
EXPERIENCES
90%
71%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 70%
§ Text message 42%
to receive them?
Weekly 62%
location
communications
29%
29%
25%
Grocery or drug store (website/mobile app)

23 23
MORE LIKELY TO DO
EXPERIENCES
75%
69%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 63%
§ Direct mail 29%
to receive them?
Weekly 67%
Receive notifications when
your prescriptions are ready
for pickup
Receive notifications for
prescription refills
40%
38%
36%
Grocery or drug store (physical location)

24 24
MORE LIKELY TO DO
EXPERIENCES
87%
64%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 81%
§ Text message 45%
to receive them?
Weekly 44%
location
Home page automatically
shows best fares / hotel
deals in your frequently
travelled cities
based on past trips or
35%
32%
28%
Travel and leisure (website/mobile app)

25 25
MORE LIKELY TO DO
EXPERIENCES
94%
59%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 76%
§ Direct mail 30%
to receive them?
Monthly 45%
based on past trips or
location
Pictures / vacation ideas
provided based on your
past travel habits
52%
44%
25%
Travel and leisure (physical location)

26 26
MORE LIKELY TO DO
EXPERIENCES
76%
70%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 65%
to receive them?
Weekly 45%
Keeps track of your viewing
history for your reference
and to make it easier to
view new content
Recommendations of other
shows you might like based
on viewing habits
Reminders of when to
watch specific events /
shows based on viewing
habits
50%
36%
29%
Media or entertainment (website/mobile app)

27 27
MORE LIKELY TO DO
EXPERIENCES
97%
55%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 73%
§ Text message 48%
to receive them?
Weekly 49%
Provide offers or coupons
based on your past
activities
Provide offers or coupons
location
Providing recommendations
for future events based on
those you've previously
attended
77%
65%
29%
Media or entertainment (physical location)

28 28
MORE LIKELY TO DO
EXPERIENCES
86%
55%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 68%
§ Direct mail 43%
to receive them?
Monthly 46%
Storing your purchase or
maintenance history for you
to reference later
Reminders of upcoming
scheduled service needs
recurring maintenance for
your vehicle
49%
44%
38%
No current all-stars…
opportunity to lead category
Automobile company or dealer (website/mobile app)

29 29
MORE LIKELY TO DO
EXPERIENCES
79%
51%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 68%
§ Text message 29%
to receive them?
Monthly 44%
recurring maintenance for
your vehicle
Storing your purchase or
maintenance history to your
account for you to reference
later
52%
42%
36%
No current all-stars…
opportunity to lead category
Automotive company or dealer (physical location)

30 30
MORE LIKELY TO DO
EXPERIENCES
87%
66%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 62%
to receive them?
Weekly 57%
location
past purchases or
48%
42%
20%
Restaurant or food ordering service (website/mobile app)

31 31
MORE LIKELY TO DO
EXPERIENCES
91%
63%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 79%
§ Text message 48%
to receive them?
Weekly 55%
based on past orders
location
past purchases or
68%
60%
37%
Restaurant or food ordering service (physical location)

32 32
MORE LIKELY TO DO
EXPERIENCES
82%
81%
PERSONALIZED
EXPERIENCES
experiences?
§ Email 72%
to receive them?
Weekly 50%
location
past purchases or
42%
32%
23%
Online retailer (website/mobile app)

33 33
33
Industry Performance vs. Personalization Impact Website/Mobile App
Dept./mass
merchandise store
Restaurant/food
ordering service
Online
retailer
Financial
institution
Media/
entertainment
Travel &
leisure
Grocery/
drug store
Automotive
Websites/mobile apps from all industries can benefit from personalization.
Online retailers are leading the charge, while financial institutions and automotive dealers can improve.
Likelihood to do business with companies offering personalized experiences:
(Much/somewhat more likely)
How well companies’ websites/mobile apps are delivering personalized experiences:
(Very/somewhat well)
Dept./mass
merchandise store
Restaurant/food
ordering service
Online
retailer
Financial
institution
Media/
entertainment
Travel &
leisure
Grocery/
drug store
Automotive
Q10. How well do you believe that the following types of businesses currently do when it comes to offering personalized experiences?
Q16. How would the company offering you some or all of these personalization options impact your likelihood to do business with that specific CATEGORY?
90% 89% 87% 87% 86% 86% 82% 76%
71% 59% 64% 66% 69% 55% 81% 70%

34 34
34
Industry Performance vs. Personalization Impact Website/Mobile App
Likelihood to do business with companies offering personalized experiences:
(Much/somewhat more likely)
How well companies’ physical locations are delivering personalized experiences:
(Very/somewhat well)
Q10. How well do you believe that the following types of businesses currently do when it comes to offering personalized experiences?
Q16. How would the company offering you some or all of these personalization options impact your likelihood to do business with that specific CATEGORY?
97% 94% 91% 78% 77% 75% 59%
55% 59% 63% 63% 61% 69% 51%
Dept./mass
merchandise store
Restaurant/food
ordering service
Financial
institution
Media/
entertainment
Travel &
leisure
Grocery/
drug store
Automotive
Dept./mass
merchandise store
Restaurant/food
ordering service
Financial
institution
Media/
entertainment
Travel &
leisure
Grocery/
drug store
Automotive
Physical locations are falling short — particularly entertainment
companies and automotive dealers.

35
How to identify
consumers who are
receptive to
personalization

36 36
Key findings
To encourage continued loyalty from high-value
consumers, offer impactful and relevant personalized
experiences.
Continue to expand and advance personalized experiences
to encourage frequent shopping.
Personalization is profitable. ‘Super’ customers want and
expect to receive personalized experiences.
Those who believe companies are doing well on offering
personalized experiences shop more frequently.
Maintain and build trust with 'super' consumers by
reinforcing that their information is being used securely
to create personalized experiences.

37 37
37
Appreciating personalized experiences does not necessarily translate
to more purchases.
Companies that are
among the top tier in
personalization did not
show greater spend
than those who perform
moderately.
Q3. In general, how appealing is a personalized experience if a company offered this to you?
Not very appealingNeither appealing
nor unappealing
Not appealing
at all
Very appealing Somewhat
appealing
Average # of purchases
8.4 9.1 10.1 8.2 10.2

38 38
Additionally, those who believe companies are doing “very well” on offering
personalized experiences shop more than
more frequently than those who feel companies
are doing “very poor.”3x
But all “super” customers want and expect personalized experiences.
Consumers who believe personalized experiences are “very appealing” are
more likely to be a brand’s most valuable customer – those that
are expected to make more than fifteen transactions in one year.10x

39 39
39
Additionally, those with a positive outlook about businesses offering
personalized experiences shop more frequently.
Q7: Thinking of all the companies and websites you shop at or do business with, how well do you believe companies are doing with providing personalized experiences currently?
Somewhat poorNeutral Very poorVery well Somewhat
well
Average # of days between purchases
156 210 284 384 518

40
Methodology
40

41 41
Survey outline
Screening to
ensure census
representation
General
attitudes toward
personalized
experiences
Industry-specific
attitudes of
personalized
experiences
Key motivators
and barriers for
providing
personal
information
Other
classification
questions
41
An online survey was conducted in April 2017
Following completion of the initial analysis, we dove deeper to determine the relationship between
personalization and actual purchasing behavior using Epsilon transactional data.
Ages 18-64 Not employed in marketing, advertising, public
relations or market research industries
A total of 1,000 responses were collected for the survey meeting the following criteria:

42
Consumers demand control over how their information is used, expect highly customized
experiences and look for more than just a quick discount.
But it’s not always that easy. Personalization requires:
- tying a consumer's online and offline data together
- actionable consumer data to deliver real-time, custom messages
- learning and optimizing your marketing campaigns
- reporting on how your marketing efforts are effecting the bottom line
Are you meeting their expectations? Contact us to understand the effectiveness of
your current digital experience strategy and how to take it to the next level with
Epsilon and Conversant.
Next steps

The power of me: The impact of personalization on marketing performance

The power of me: The impact of personalization on marketing performance

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